PART 2 GIFT TAX

Overview

This Part contains provisions dealing with gift tax. What is charged to tax as a gift is the property to which a donee becomes beneficially entitled in possession. Where a benefit is taken “on a death” within the meaning of section 3, it will be liable to inheritance tax and not gift tax. If the property is purchased for full consideration in money or money’s worth, no charge to tax arises.

The expression “taxable gift” is defined. The treatment, for tax purposes, of joint tenancies and the prevention of tax avoidance by gift-splitting is also provided for.

4 Charge of gift tax

This section imposes the charge to gift tax. The tax is charged on the taxable value (see section 28) of every taxable gift (see section 6) taken by a donee.

Relevant Date: Finance Act 2015